No Buyers for Mallya’s Kingfisher House and Kingfisher Villa

Mumbai, March 07: The State Bank Of India-led consortium’s attempt to auction two properties of Vijay Mallya’s defunct Kingfisher Airlines — Kingfisher House in Mumbai and Kingfisher Villa in Goa failed again on Monday.

No investors turned up despite reducing the reserve prices for both the properties by nearly 10% to recover loans from the Kingfisher Airlines that shut down in 2012 after a huge financial burden.

The former headquarters of the Kingfisher airline was put under the hammer at a reserve price of Rs 103.5 crore. While Kingfisher Villa in Goa priced a reserve of Rs 73 crore.

Vijay Mallya himself has been in Britain for almost a year despite summons against him exists here in India. Meanwhile, a number of nationalised banks have commenced recovery proceedings for their unpaid loans and some of them even declared him a ‘wilful defaulter’.

On last week, Vijay Mallya blamed faulty engines as the main reasons for the collapse of Kingfisher Airlines.

While the auction of Kingfisher House in Mumbai has failed for the fourth time, Kingfisher Villa in Goa could not get any bid for the third time.

A source familiar with the auction revealed that “Although there were enquiries for both the assets, no bids were received”.

In the previous auction held on 2016 December, the reserve price for Kingfisher House was Rs 115 crore. This time it is reduced by 10 per cent.

At the first attempt to sell Kingfisher House in March 2016, the lenders fixed a reserve price of Rs 150 crore, which was reduced to Rs 135 crore in the second attempt.

Kingfisher House, the prime property has a built-up area of over 17,000 sq ft and is located in the plush Vile Parle area near the Mumbai domestic airport terminal.

The State Bank Of India-led consortium had reduced the reserve price of Kingfisher Villa, the posh property situated at Condolim in North Goa, by 10 per cent from Rs 81 crore quoted in the second attempt at an auction of this property in 2016 December.

The King Fisher Villa, which had been home to numerous lavish parties hosted by Mallya in his good times, was put under the hammer for the first time in 2016 October with a reserve price of Rs 85.29 crore.

Auction for both the properties was conducted by SBI Capital Markets Limited on behalf of the lenders.

 Vijay Mallya owes over Rs 9,000 crore to lenders like State Bank Of India, The Punjab National Bank, IDBI Bank, Bank Of Baroda, Allahabad Bank, Federal Bank and Axis Bank, among others.
Mallya left India on 2016 March 3 to Britain and Indian authorities have been trying since then to bring him back.
Top